Investigation Into Condo Management Leaves Tenants and Investors in Limbo

The regulator for condominium management in Ontario is looking into SIREG Management after the company informed investors it could no longer ensure rent payments, which has caused some owners to rush to collect rent directly from tenants.

Many investors from the 21 buildings managed by SIREG are now trying to figure things out, with some going door-to-door to collect rents from tenants personally. The company manages around 1,800 condo units across Ontario, including locations like Sarnia, Kitchener, Welland, North Bay, and London’s Kipps Lane.

Several tenants at Kipps Lane in London shared that they were unaware they lived in investor-owned units because their rent payments went straight to SIREG.

A few investors who spoke with us said they were generally satisfied with their investments until last week when the company made a shocking announcement that it could no longer guarantee rent payments.

The Condominium Management Regulatory Authority of Ontario (CMRAO) confirmed they’ve received five complaints about SIREG and have “commenced investigations into the matters raised.”

The CMRAO issues licenses for condo managers, maintains a public registry of condo management boards, and can impose penalties if a tribunal finds violations of its code of ethics.

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Investors managing hundreds of rental condos throughout Ontario are now facing difficulties after SIREG Management cited financial challenges. CBC London’s Andrew Lupton reports on what this means for both tenants and investors.

Pitched as hassle-free investments

Since the early 2010s, SIREG has been purchasing older rental buildings, converting them into condos, and selling them to investors looking for rental income. Under this setup, SIREG was responsible for managing properties, collecting rents, and paying management fees to condo boards. After those expenses were covered, monthly rent distributions would be paid to investors.

SIREG condos were marketed as hassle-free investments that allowed buyers to become landlords without needing extensive involvement with tenants or property management. Investors weren’t given any information about their tenants or even how to contact them.

The same statement noted that SIREG president Todd C. Slater had stepped down due to health issues. Another announcement indicated that Reflect Advisors has been appointed to oversee the company’s management team and work on “preserving value for the company and its stakeholders.”

In light of these developments, some condo owners have begun reaching out directly to tenants in hopes of collecting rent themselves. Others are exchanging information through new Facebook groups set up for this purpose.

No one answered calls made to SIREG on Monday seeking comments.

‘Shocked’ by poor conditions

Patrick D’Sa owns two condos in separate buildings managed by SIREG on Kipps Lane in London. D’Sa visited his properties for the first time on Monday since living in Toronto.

He expressed shock over how poorly maintained the buildings were overall. He understood why tenants might feel uneasy when approached by unfamiliar landlords.

D’Sa mentioned he’s taking a gentle approach during his initial discussions with tenants.

“I don’t want to scare people and they don’t know me from boo,” said D’Sa. “I’m giving them a letter showing them that I am the owner and if they could contact me, we’ll talk about things going forward. They shouldn’t feel afraid that they’re going to lose their home.”

D’Sa also expressed concern regarding the financial stability of the condo board managing Kipps Lane’s buildings since most boards typically consist of residents living there.

According to data from the CMRAO registry, directors overseeing 756 and 754 Kipps Ln each have three members: Todd Slater, his wife Sheila Vos Slater, and Michael Sackmann. When contacted by us regarding this issue, Sackmann stated he did not want comment further but noted his employment with SIREG ended last week.

D’Sa reported that some investor-owners are attempting organize efforts aimed at calling meetings among condo board members sufficient enough votes needed oust SIREG’s control over operations involved managing these properties.

Tenants ‘shocked’ when owners show up

Alexandra Stuart wants owners of condominiums located at Kipps Lane stop approaching renters since building manager , SIREG Management got hit financial trouble.(Andrew Lupton/)

Meanwhile, some renters feel uncomfortable being confronted unexpectedly by individuals asking them pay rent directly rather than through proper channels established previously.

Alexandra Stuart , who resides within unit located at756 kipps lane states she hasn’t interacted yet with her own landlord; however many neighbors have experienced such encounters already.

“Tenants are shocked that their units are owned,” Stuart said.
She added while understanding need collect funds cover mortgages among other obligations-it doesn’t change fact legal commitment remains towards paying dues owed under terms agreed upon when signed lease agreement originally made under supervision provided via sereg management services.
“We understand owners plight-they need cash flow-but threatening existing occupants either new contracts demanding immediate payment isn’t helping,”she added frustratedly.” For those investing-this whole situation was meant be straightforward but suddenly here we find ourselves confronting unexpected visitors demanding explanations!”
The entire episode left both sides unsure what will happen next; specifically regarding responsibilities concerning collection bills overall building maintenance while CMRAO conducts its investigation.

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